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Consider the following for Executive Electronics Total Assets: 2017- 12,650,000 and 2018- 12,100,000 Noninterest-bearing current liabilities: 2017-550,000 and 2018- 572,000 Net income: 2017- 770,000 and
Consider the following for Executive Electronics
Total Assets: 2017- 12,650,000 and 2018- 12,100,000
Noninterest-bearing current liabilities: 2017-550,000 and 2018- 572,000
Net income: 2017- 770,000 and 2018- 880,000
Interest Expense: 2017- $2,310,000 and 2018- 330,000
Tax Rate: 2017- 40% and 2018-40%
Required rate of return: 2017- 10% and 2018-12%
Evaluate the company in terms of residual income (RI) which is equivalent to EVA since there are nonadjustments for accounting distortions.
Residual income 2017:
Residual income 2018:
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Auto Body And Repair Industry IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
1304131661, 978-1304131669
